“The initiation of accounting, as both science and system of

registering principles and techniques…”

According to this, accounting is both a science and a field of

practice integrated in the economic system of information. As a
component of this system, accounting gives almost all the information
necessary to take decisions at a micro and macroeconomic level, on
short or long term. Accounting was born out of the practical necessities
of the economic activity and has developed along with it.
The subject of accounting always had an objective character, it
was developed gradually, long with the qualitative and quantitative
evolution of the economic activity, of the succession of different ways of
production. The accounting studies the value of the economic activity, at
a micro and macroeconomic level, regarded as the material and
currency means used by the patrimony units in their activity, the
economic processes, the sources of the means and results of the
economic agent’s activity.
The scientific character of accounting stands also for its own
method of research, using own proceedings(balance sheet, account,
cheking balance) and also proceedings which are those of different
disciplines(observation, classification, verification).
Accounting finds its usefulness in the social - economic life, being
an essential and active instrument of economic, financial and
adminisstrative research of the patrimony units. It reflects in a financial
way the tangible and intangible assets, the rights, obligations and other
elements of the patrimony, the movements and changes determined by
the economic and financial transactions, on the expenses, the income
and the results which have been obtained. The usefulness of accounting
has always and still is detremined by the necessity of the patrimony
units to be aware of the things they own, their activities and results, the
interest of the third(partners, creditors) in knowing the situation and
evolution of the institution, the fiscal authorities in establishing the
taxes.
As a scientific discipline, accounting deals with establishing the
principles, standards, rules of the processing of the accounting data. It
also deals with the documented recording of the economic and financial
transactions regarding the movement of material and financial assets,
the economic processes, their sources and control, with a view to
characterize generally the economic and financial status and to specify
the results which have been obtained by the patrimony units during a
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certain period time, using its own procedures in order to accomplish the
subject.
Accounting as a science, has discovered and come up with most
general principles, such as: the principles of double representatioon and
of double-entry.
As an accounting technique, accounting stands for procedures of
applying the principles and standards established by the accounting
science, using ledgers, accounts, forms, etc, in order to obtain
information necessary to take decisions, being a form of economic
accounting.
As a scientific discipline, according to its own research,
accounting has the following tasks:
- the exact definition of its subject and field
- the definition of the method of research and of its proceedings
- the elaboration of the means of putting accounting into practice

In management, accounting has a lot of important functions, such

as:
- the recording function
- the informing function
- the control and audit function
- the forecasting function

The main systems are those in simple and double entry, which are
dominant in both theory and practice.
Accounting in simple entry is called so because an economic
transaction is registered in one entry. For example, the etrance of a sum
of money into pay office is registered at “Pay Office” entry.
Accounting in double-entry considers the representation of the
economic transactions by recording in two entries, at the same time, an
entry which shows the origin and another which indicates the
destination.
The single and double circuits systems are created according to
the concept of organizing the accounts.
The accounting system with a single circuit organizes the accounts
in only one flux inside the economic circuit :capital – supply –
manufacture – sale – accomplishment both for the transactions
regarding the relations with the third and those regarding the internal
administration.

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 The financial accounting information, which is specific to this
level of accounting, is destined to the external users such as :investors,
employees, creditors, the government or the public, and its delimited by
the annual financial situations which are composed of: the balance
sheet, the profit and loss account, the situation of the changes in one’s
own capital, the situation of the treasury flux and accounting policies,
explanatory notes.
The internal administrative accounting has as its main goal the
control of the production factors with a view to obtain several products,
works, quality services with rational costs.
So, this is organized by each patrimony institution, according to
the specific of its activity, and also to its own necessities. It has the
following main goals : calculating the production costs, establishing the
results and profitability of the products obtained and of the
accomplished pieces of work, making up the budget of income and
expenses owed to different activities, following and controlling this last
one in order to find out the results and supplying the data necessary to
initiate the decisions regarding the administration of the patrimony.

“TEORIA SI BAZELE CONTABILITATII”

lumina lex, Bucuresti 2005

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